Understand About Tax Refund If You Are Getting Employed In The UK


If you have got any job offer in the United Kingdom then it is very important that you should get acquainted with various facts about the UK tax system, so as to make sure that you do not end up paying penalties, due to ignorance.

When you are employed in the United Kingdom then you need to ensure that you provide your prospective employer the National Insurance Number in advance. In this manner, you can avoid paying any emergency tax that can be much higher as compared to the UK’s normal tax rates.

The National Insurance Number or NIN is your unique number, which will be allocated to you by the United Kingdom’s DEPARTMENT FOR WORK AND PENSION. It will enable you to work and also pay your necessary taxes. Also, this will help you to access various public services while you are working in the UK.

Self-employed tax and PAYE

You will either have to pay all the taxes either as PAYE employee e.g. nurse, receptionist, or a teacher or as a self-employed person e.g. construction subcontractor, once you begin working in the UK.

As a self-employed professional in the UK, it is possible to claim back all your work-related expenses e.g. transport, work tools and dry cleaning and washing of your work uniform etc. You can also claim your tool tax refund.

In case you are PAYE then your employer will deduct all taxes from your earnings whenever you are paid. In case you are working in the UK as self-employed then you are responsible to fill tax return on your own. It is called self-assessment tax return form.

Claim back your taxes

Some of you may end up paying on wrong tax code or overpay your tax, in such case you can always claim back this excess money back after you leave the UK or after the tax year come to end on 5th April. Maximum 6 years period is available for claiming overpaid tax here in the UK.

You may use free online calculator for tax refund, if you wish to know how much amount you may be owed. For claiming your tax refund, you have to file tax return.

Tax return is one tax form that you need to submit annually by documenting all your earnings, deductible expenses, every tax paid and various benefits that you received and send that to the HM REVENUE & CUSTOMS for their review.

By looking at all information provided, it will be determined if you have paid any extra tax and do you owe any tax refund.

Your amount of the UK tax refund will depend on factors like:

  • All your expenses
  • Your earnings
  • Whether your working period was for the complete tax year period
  • In case you worked for more than single job or changed your jobs
  • If you have children
  • In case your circumstances had changed, like you turned into self-employed
  • In case you took short break during or in between your employments

If you are choosing any tax return company, then you must select companies which are:

  • Registered agents of HM Revenue and Customs
  • Have their office in the United Kingdom
  • Can offer guarantee that all your tax refund shall be legal and safe